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Retail Is Tough and Growing Tougher.
How Do We Improve Margins?
Clay ParnellParker Avery Group
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You’ve got to start with the customer experience and work back toward the technology – not the other way around.
Creating a Foundation for Transformational Growth
Transformation, Innovation, & Change
Blood, Sweat, & Tears
Creating a Foundation for Transformational Growth
Transformation, Innovation, & Change
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Who Is Belk?
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Belk outperformed competitors three years in a row
0.2
0.5
3.0
5.3
4.0
5.5
-25.2
0.3
2.7
3.7
4.0
6.3
-7.4
-1.2
-0.4
1.9
1.0
2.9
FY14
FY13
FY12
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Total Online Sales and Online as a % of Total Sales
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Digital Journey
Phase 1: Grow eCommerce
Phase 2: Fix the Foundation
Phase 3: Omnichannel
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29 Month Journey
Q3FY14Q2FY14Q1 FY14 Q4 FY14Q3FY13Q2FY13Q1 FY13 Q4 FY13
August 2012 – May 2013 November 2013
Demand Forecasting
Merchandise Planning
Master Data
DataWarehouseESB/ ETL
Replenishment
Size Optimization
Allocation
Purchase Order
Pack Optimization
Inventory & Stock Ledger
Q2FY14
Invoice Match
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The Initial 5 Lessons Learned…
Assess the organization’s maturity
Are you prepared for the costs?
Do you have the IT team in place to deliver it?
Do your partners have Skin in the game too?
Change Management
1
2
3
4
5
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Roadmap to Omnichannel
Transform theeCommerceexperience
Transform theIn-Store
experience
ExpandMobile at every
touch point
IntegrateCustomer
Data
EstablishEnterpriseInventory
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Omnichannel Vision
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Typical Retailer Activity - Tactical
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Foundation Execution
What CAN I Do?
What Do I WANT To Do?
CAPABILITIES:• Item • Price• Size Opt• Pack Opt• Plan• Buy• Replenish• Allocate• Receive• Flow to Stores
DIFFERENTIATORS:• How do I view My Consumer• How My Consumer views us• What is My Assortment• How do I consider My Inventory• How do I Serve My Customer
(options)(requirements)
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The Next 5 Lessons
• New and significant, or• Deeper manifestation of earlier learning• More complex• Perhaps more subtle in some areas
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The scale of change is big, and differentPerhaps not truly a larger change, but
touches so many, impacts so much
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There are significant organizational and incentive challenges
Sales and compensation models impactedStore behaviors need to change
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Customer Service Expectations ExpandIt used to be…compete on price, service or assortment
(or two of these)Now consumers expect exceptional service everywhere
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Partner capabilities critical for foundation
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Less about monolithic, more about continuous improvement
Consumers will learn more, want moreTechnology will change ever faster
The cheese will keep moving
On social networks
In stores
On the go Online
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Shifting from discrete commerce channels….
…to a truly engaged and delighted consumer
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You’ve got to start with the customer experience and work back toward the technology – not the other way around.
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Thank you
Clay ParnellPresident and Managing Partner
The Parker Avery Group